The Unequal Effects of Liberalization: Evidence from Dismantling the License Raj in India

S-Tier
Journal: American Economic Review
Year: 2008
Volume: 98
Issue: 4
Pages: 1397-1412

Authors (4)

Philippe Aghion (London School of Economics (LS...) Robin Burgess (London School of Economics (LS...) Stephen J. Redding (Stanford University) Fabrizio Zilibotti (Yale University)

Score contribution per author:

2.011 = (α=2.01 / 4 authors) × 4.0x S-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

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Abstract

We study whether the effects on registered manufacturing output of dismantling the License Raj—a system of central controls regulating entry and production activity in this sector—vary across Indian states with different labor market regulations. The effects are found to be unequal across Indian states with different labor market regulations. In particular, following delicensing, industries located in states with pro-employer labor market institutions grew more quickly than those in pro-worker environments. (JEL J50, L52,L60, O14, O15, O25)

Technical Details

RePEc Handle
repec:aea:aecrev:v:98:y:2008:i:4:p:1397-1412
Journal Field
General
Author Count
4
Added to Database
2026-01-24